Reducing Debt Obligations
Lower Interest on Personal Unsecured Credit
Individuals may apply to their respective banks or credit card issuers to convert their outstanding balances from revolving unsecured credit facilities to term loans with effective interest rate capped at 8% (compared to the 26%
This option is available to all individuals who have suffered a loss of 25% or more of their monthly income after 1 February 2020 and are between 30 and 90 days past due on their revolving unsecured debts. Individuals may apply to their lenders for conversion of their outstanding unsecured debt till 30 September 2021.
Easier Refinancing or Repricing of Investment Property Loans
Individuals can apply to refinance or reprice their loans, without being subject to the total debt servicing ratio (TDSR) and mortgage servicing ratio (MSR) under MAS’ property loan rules, till 30 September 2021, to lower their monthly payments. Any subsequent application for reduced instalment plans for property loans will be assessed by their bank or finance company on a case-by-case basis.
If the loan is still within the lock-in period, contractual penalties may apply.